Cosmos eco rally is now history looking at the projects’ valuations. However, even at the narrative’s peak, Secret Network has been in the shadow of Osmosis, Juno, and Luna despite strong development and innovative value proposition.
General Project Overview:
A secret network is a privacy-protecting decentralized application platform. It is the first chain and only chain providing privacy-preserving smart contracts, which means flexible encryption capabilities for users.
For normies, it’s a combination of Monero’s privacy with Ethereum’s smart contracts.
Basic Information:
Built with Cosmos SDK, IBC implemented
The theoretical tps(this is without DYmention rollups proposition): 10000
Language: Rust utilizing CosmWarm
Risks:
- Private coins shootout:
We’ve seen it last year. Regulators all over the world went strong after privacy coins. Exchanges in multiple countries were forced to delist privacy coins such as Monero and Zcash. This situation could be repeated on a broader scale, ripping off volume and liquidity. Privacy coins natives anticipate this type of scenario brought by the governments. Secret Network has a significant advantage over other competitors here. Being connected by IBC with a fast-growing decentralized Cosmos ecosystem would definitely ease the damage. The next thing is Secret’s ecosystem itself. Being a layer 1 smart-contract platform will provide traction, liquidity, and usage that other privacy players simply can’t have.
2. Exploits and Hacks:
I mention this risk in every writing. One can’t avoid it.
3. Macro Nuking:
$scrt as the crypto market beta could go another 50% down, despite already being far away from its highs.
Potential Narratives:
- Erc-20 and Cosmos token working capability:
Secret enables privacy to wrapped eth, erc-20 tokens at 1/4 of the tornado cash costs via Secret bridge. At the same time, IBC enables easy transfers between other cosmos chains.
2. Cosmos Development:
TL: TR
cosmos theta upgrade(interchain accounts), coming interchain security
3. Project’s Development:
- Supernova upgrade: implementation of IBC, significantly lowered tx fees
- Shockwave(2022’s Plan):
- 100 new projects building in the Secret ecosystem in H1 2022
- Hundreds of thousands of new users onboarding onto Secret Apps in H1 2022
- Multiple Secret Apps achieving 10,000+ active users
- Active development by SCRT labs:
Weekly community calls, monthly dev reports, community programs, and open communication.
- Recent Partnership with dYmention, modular settlement layer specializing in rollups. Bringing vertical scaling to Cosmos. The first rollup will be launched on Secret Network meaning further and faster scaling.
4. Out of fashion & yield
Cosmos' narrative has been forced out really quickly. Major coins are down significantly. I tend to believe that Cosmos hype will come back sooner than later.
Here are a few more words about it:
Staking:
$scrt staking roi is 22–27% apy, with 21 days lockup. Protocol yearly inflation is estimated at 7–15%.
So, it does provide an 8% gross yield to investors. Also, from inflation 17% of new supply goes to community pools, which fund devs and help grow new projects.
5. Airdrops
$scrt stakers were eligible to receive many airdrops as part of the cosmos ecosystem. This thing won’t change. Confirmation and rumors of airdrops are released on a weekly basis. Staking some $scrt might pay off the initial investment shortly after.
6. $400M Ecosystem grants& increased adoption
Eco grants:
$225M ecosystem fund- Led by SCRT labs and other partnered ventures
$175M accelerator pool- Funded in $scrt, managed by SCRT labs, intended to be used as an initial foundation for developers before they turn to Secret Ecosystem Fund and work towards global growth.
Early Near’s vibe.
VCs such as Defiance Capital, Alameda Research, Coinfund, and Hashey disclosed having scrt positions.
Adoption:
Over 120K new unique wallets since Jan 1 22’. While most chains are struggling to sustain any users growth.
7. Recent Monero interest:
The narrative started with exchanges being accused of $XMR paper trading.
Monero is up nearly 50% in 30d. It could lead to nothing or ignite private coins narrative beneficial for $scrt.
Twitter presence:
Not much going on apart from cosmos ppl shilling wall. However, these days $scrt ticker is being staged with $osmo, $juno, and $atom in hopium tweets, which was not common when cosmos narrative was hot.
$Scrt tokenomics:
Uncapped inflationary(7–15% p.a) supply
circ. supply: 170 mil → $850M marketcap
Enigma is now called SCRT labs(core devs). Allocation for bridge costs, running API nodes, paying for conference booths, etc.
Team coins are vested for 2–4 y counting from Jan 21’.
TA:
$4.00- bottomed
To confirm trend reversal I’d like to see the previous high($5.7) being supported.
$4.6–4.7 is a good entry range for me.
Take Profit & Cut losses strategy:
I do not set either of them myself. Mostly, because I hold the small position for now and I anticipate network growth& airdrops.
If I were to make one:
Take profit: $10- previous ath and psychological level
Ecosystem:
Few notifiable mentions.
- ShadeProtocol
Privacy-preserving algorithmic stablecoin
- Legendao
New Nft platform launching on Secret
https://twitter.com/73lV_/status/1517080447955652610
- Sienna & Secretswap
Dexes with privacy built feature, launching additional functions such as lending and launchpad.
Still not much, expecting more and more quality projects launching on Secret.
Conclusion:
$scrt is my favorite pick from cosmo eco this year. Not sure about short-term price action with a macro situation, but I see remarkable long-term potential.
This is not financial advice by any means.
